This is a very interesting discussion topic to me. I'd be interested in future episodes that compare the benefits and drawbacks of other portfolio diversifiers (e.g. gold, commodities, real estate) as well.
From the risk management purpose, there is no limit to the possible loss when shorting and when things go wrong a buy stop loss might take a while to be executed. Shorting Herbalife nearly blew up Bill Ackman's portfolio and high leverage gave Ken Chase high losses. I'm not sure how I'd be able to limit the damage an ETF could cause by shorting.
I'm halfway through the episode and I'm still not clear exactly what's actually being discussed. Managed futures, great, but which ones ? I assume that you're referring to a long/short trend-following strategy (?) but it would be useful to hear a clear definition.
Just checked. Exactly. When you clean up the noise and justification and look at the performance, since inception in 2019, the before tax return 7.66%, after tax 5.66%, after tax and sale of shares 5.33%. Once again and as always, there are better lower risk options to manage short term cash flow needs and invest in long term index or other funds. If you can't dazzle 'em with brilliance, baffle them with BS.
Keep doing more managed futures videos! Underrated topic.
We will. Thanks for listening!
This is a very interesting discussion topic to me. I'd be interested in future episodes that compare the benefits and drawbacks of other portfolio diversifiers (e.g. gold, commodities, real estate) as well.
Thank you! We will look to do more episodes on those topics.
Look at the fact sheet not the stock chart to obtain the return
From the risk management purpose, there is no limit to the possible loss when shorting and when things go wrong a buy stop loss might take a while to be executed. Shorting Herbalife nearly blew up Bill Ackman's portfolio and high leverage gave Ken Chase high losses. I'm not sure how I'd be able to limit the damage an ETF could cause by shorting.
on liquid future smarkets like the ytrade, I dont see a problem. It's not single stock positions, tht can hit gound zero
I'm halfway through the episode and I'm still not clear exactly what's actually being discussed. Managed futures, great, but which ones ? I assume that you're referring to a long/short trend-following strategy (?) but it would be useful to hear a clear definition.
Love Andrew, smart and good guy.
Diversifying a portfolio with uncorrelated assets/strategies such as managed Futures is defendable, is next step managed Options?
Isn’t that just $JEPI and all the etfs selling vol
$DBMF 5 year return is zero at point of writing
with 1year correlation to SPY at 0.44 - truly a diversifier ;)
Just checked. Exactly. When you clean up the noise and justification and look at the performance, since inception in 2019, the before tax return 7.66%, after tax 5.66%, after tax and sale of shares 5.33%. Once again and as always, there are better lower risk options to manage short term cash flow needs and invest in long term index or other funds. If you can't dazzle 'em with brilliance, baffle them with BS.
You’re looking at price return. Total return is 6.6% annualized.
I remember being a newbie myself it's ok, you're looking at the wrong chart - switch to total return that factors in distributions too
@@antonjerkovich250 I checked on Yahoo Finance chart. Where can I find the total return info instead?